Wednesday, January 18, 2012
"A very Taxing Day for Mitt Romney": How this makes the case for a Progressive Consumption Tax
You can't attack Mitt Romney for paying the low Tax Rates that he does. You can attack him for a lot of other things he does and says, especially for his Flip Flopping. Mr. Flip Flopper himself but not on his Tax Release, because he's simply following the letter of the Federal Tax Laws. He's basically been running for President full time, since probably late 2006. When he was wrapping up his last few months. As Governor of Massachusetts. He didn't go back to Corporate America and take a big job there or any job there. He no longer runs any company's, he basically now makes his money. Off of his Business Investments and money earned probably by sitting on some boards. And the stocks that come from that, as well as money he makes on the Republican Speakers Circuit. As well as Book Fees he's made since running for President. He makes his money similar to Newt Gingrich but Newt has his own business's and groups he oversees. And hasn't been running for President as long as Mitt. Only for a year or so, which means Mitt can get out of paying the 33-35% in Federal Income Taxes he would normally be paying. Had he had a full time paying job but most of his income comes from Business Investments. And plus he's already worth 250$, so he's not exactly strapped for cash and never will be. So instead of paying Federal Income Taxes, he pays Capital Gains Taxes instead. And thanks to Congress back in 2003, he pays around 15% in Federal Taxes.
I'm pointing these facts out not to defend Mitt Romney, if your familiar with my blog. You know I'm not a fan of Flip Flopper and won't be voting for him. I point these things out to make my case for the need for Federal Tax Reform. If you make as much money as someone like Mitt Romney 50-100M$ in 2011 or whatever he made in 2011. And your only paying 15% in taxes and someone making 50K$ a year is paying that or more. Especially if you consider Payroll Taxes, thats simply unfair, I''m glad GOV. Romney has been as successful as he's been in life financially. Thats a good thing, he should just pay his fair share in taxes as everyone else. In his Income Bracket should as well and we need to change the law in order to do that. Thats called Tax Reform and with todays Tax Code, Mitt Romney can get away legally with only paying 15% in Federal Taxes. But if we scrap the Tax Code and the Federal Income Tax and replace it with what I call a Progressive Consumption Tax. Wealthy people who make most if not all of their income on investments. Would no longer be able to do that, they would be forced to pay their fair share to Uncle Sam. Like the rest of us, because they simply spend a lot more money. And by a lot more Luxury Items then the rest of the people.
With my Progressive Income Tax, it would be fairly simple scrap most of not all of the Tax Loopholes in the Tax Code. Including all Corporate Welfare, leave in the Earn Income Tax Credit, the Child Credit and Home Mortgage Interest Deduction. And a few other things, tax Cost of Living Items, things like food, transportation except for Luxury Autos. Homes except for 2nd Homes, things that people need to survive would be taxed at a fairly low rate. But Luxury Items, Luxury Homes, Luxury Cars, vacations, entertainment, Sporting Events Junk Food and Drink. Would be taxed higher, so everyone would have to pay their fair share in taxes. Based on what they take from society, not what they put into society. Including High Earners and criminals, we would all have to pay our fair share in taxes. Scrap the Federal Income Tax and replace it with a Progressive Consumption Tax.